The Kansas Department of Commerce will begin taking applications on July 1 for statewide allocations of $46 million of recovery zone facility bond capacity and $31.5 million of recovery zone economic development bonds.
Applications will be accepted through July 23, with the statewide awards to be announced by Aug. 15. Applicants must show they can issue the bonds by Dec. 31.
The statewide allocation could be more if local bond allocations are not subscribed by June 30.
The department said it would post updates on total bond capacity at www.kansascommerce.com/rz as it receives waivers of local allocations.
The bonds are authorized by the American Recovery and Reinvestment Act of 2009 to help economically distressed areas that have experienced significant job losses.
Recovery zone facility bonds are tax-exempt private-activity bonds that can finance projects in designated recovery zones.
Recovery zone economic development bonds can be issued by local governments for public infrastructure projects. The bonds are not tax-exempt, but issuers will receive a subsidy from the federal government of 45% of the interest on the bonds.
In February the Kansas Department of Commerce allocated $30.6 million in recovery zone facility bond authority for four business projects and $11.9 million in recovery zone economic development bonds for three public improvement projects.